Ex-Galleon Trader Settles SEC Lawsuit

Jul 20 2011 | 11:21am ET

Michael Cardillo, the former Galleon Group trader whose testimony helped sink a former colleague last month, will pay $68,520 to settle the Securities and Exchange Commission's lawsuit against him.

Cardillo, who pleaded guilty to securities fraud and conspiracy in January, had been cooperating with prosecutors secretly prior to his plea. While he agreed to testify against Galleon founder Raj Rajaratnam,  he was not called as a witness in that trial, which ended in Rajaratnam's conviction on all counts. He did, however, testify against former Galleon trader Zvi Goffer, who was convicted last month alongside his brother and a third man, Michael Kimelman.

Cardillo's settlement covers the profits he made trading on insider information and penalties.

No sentencing date has been set for Cardillo in the criminal case.

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